Community and not-for-profit preschools in fire-affected areas will soon be able to access a one-off fee-relief payment of up to $10,000 as part of the state government's recovery plan.
The announcement has been met with excitement from Adelong Preschool director Rachael Hassett.
Although the school building on Lynch Street avoided physical damage from the Dunns Road blaze, its director firmly believes "there's not one family here that hasn't been affected by the fire".
"The fires have definitely impacted our small community and families. Farms have been lost, their property has gone, local businesses are struggling because they have not had that tourist trade," Ms Hassett said.
"Employment has been cut, a lot of people are struggling and family income has dropped.
"Most [families] were evacuated and that has meant an extra cost in January when they didn't expect it."
Ms Hassett estimates there have been at least 10 of the preschool's 38 families that have had to reduce days or withdraw their children from the preschool entirely.
"We are a school that values two years of preschool, so if they miss out on that time, the worry is that they may struggle when they get to kindergarten," Ms Hassett said.
"We've certainly seen the effect. One family lost their house and we've had a lot of kids talking about the fire, and about having lost animals on their properties."
Under the state government's recovery plan, the minister for early childhood and education, Sarah Mitchell said the one-off payments would be made to eligible preschools within the week.
"Many services have suffered both direct and indirect impacts from the fires and some families are under a great deal of pressure financially," Ms Mitchell said.
"These payments will help relieve some of that pressure, allowing services to provide fee relief and other additional supports for their communities."
With many of Adelong's families having witnessed the fire's approach to the edge of their town in January, Ms Hassett said the funding would be crucial in helping the children maintain a sense of normality.
"We've had a lot of discussions with the kids about the fire, and we've been fortunate to have a few therapists on hand to help them deal with the disaster," Ms Hassett said.
"Preschool is a secure place when there's a change in their lives. This is a place for them to come and be comfortable to ask questions.
"For some of the kids, it's the only thing in their world that hasn't changed, that's still like it was before the fire."
Across the state, up to 200 preschools have been listed for funding.
Schools, including .at least 11 on the NSW Central Coast have been listed, despite having avoided any proximity to fire activity over the past month.
When questioned, a spokesperson for the minister's office confirmed the eligibility for each school was based on the National Bushfire Recovery Agency's assessment of local government areas.
Alongside Adelong Preschool a number of other Riverina and Central West schools have been listed, including Culcairn Preschool, Henty Early Childhood Centre and Tumut Preschool.
Long day cares in Batlow and Tumbarumba, including the Apple Tree Early Learning Centre and Carcoola Centre, have been given access to federal funding under the Childcare Subsidy.
These facilities and families at them can make an application for subsidy grants under the Commonwealth Community Child Care Fund and additional subsidy strategies.